Before I give you my list, I am assuming (and yes, I know what assuming does) that you already have a tape measure, screwdriver and a hammer. These are common household items that most people (woodworkers or not) keep around the house.  If you don’t have one, they are a few bucks each and WELL worth the investment.  AND they are my favorite types of stocking stuffers—even if it is just July, it’s already on my mind 🙂
Many home improvement projects and custom woodworking pieces alike call for a painted finish. Depending on the application process, paint can create either a rustic or refined finish, and it looks great when both paint and stain (or oil) are combined together in a piece (we love the look of a painted table base with a stained or oil-rubbed table top. See our portfolio for some great examples of this style). Paints are great for both exterior and interior protection and are available in an almost infinite number of color tones. Finishes include flat, eggshell, semi-gloss, and high-gloss depending on the amount of sheen you desire.
If you have wood pallets just lying around the yard, put them to use by turning them into a great mud room bench. This bench would look fabulous on the deck or just inside the door, wherever you want to put it. When you finish putting it all together, just sand and stain it whatever color you want and you have a beautiful bench that cost you very little to create.
For woodworking entertainment and inspiration be sure to checkout our Woodworking Video Series "The Highland Woodworker". Improve your woodworking skills and learn more about the use of woodworking tools with free online woodworking materials in the Woodworking Library. At Highland Woodworking you get more than fine woodworking tools...you get fine tool tips too! 

My Husband is Shane’s Hobby Shop and he already is on your list, so you see, even tho I do have other diy items attached, woodworking is most definitely an ongoing part of my show. I only have one official episode out, but this week I will be posting episode number 2…this will feature PART 2 Of my Cracker Platter that I built with Shane, as well as my OWN Version of a Wood Conditioner that I have created that I will be using on Shanes Potato Bin that he built and I will be going over the ingredients used, the why behind each ingredient, and WHY it was chosen to be used on wood to begin with. Should be an interesting show. I will also be doing a show on Homemade Southern Gumbo…so you see, a good combination, but definitely woodworking centered. Thanks for adding my Channel.
Check with Habitat for Humanity.  If they have a store you may find several good items such as a bench, bandsaw or etc.  When I retired and moved I donated  a complete shop full of woodworking power tools and hand tools to Habitat.  They sold them, I deducted them from my income tax.  Unfortunately I could not retire my desire to woodwork and at age 78 I built a shop and use only hand tools and a bandsaw.  Good exercise pushing  a LN #7.   Build yourself a solid bench with some southern pine with a moxon vise that can be built by hand.  Get some holddowns!
For woodworking entertainment and inspiration be sure to checkout our Woodworking Video Series "The Highland Woodworker". Improve your woodworking skills and learn more about the use of woodworking tools with free online woodworking materials in the Woodworking Library. At Highland Woodworking you get more than fine woodworking tools...you get fine tool tips too!
Steve Ramsey makes woodworking fun. His YouTube Channel, Woodworking For Mere Mortals Building, shows Steve making cool stuff in his garage in Marin County, California. From games and toys to special holiday projects during his 12 days of "Craftmas" (wooden snowflakes!), Steve consistently puts out new DIY woodworking videos and projects every Friday.
About Youtuber This channel is created to share my passion for woodworking and guide beginners into realizing the joy of this hobby. Woodworking is fun, inspiring and helps you to design, create and relax. You can pick up a piece of wood and create something out of it and the result is uplifting. You just created something valuable from piece of wood.
Frank is an architect/woodworker who creates videos with stunning visuals that are intended to inspire you. Frank uses his top-notch filmmaking skills to fast-forward himself as he works on a project. He even uses stop motion—an animation technique that enables him to manipulate objects (such as chisels and clamps and block planes) to make it appear they are moving on their own.

Frank Howarth is a unique guy - educated as an architect, but with practical woodworking skills to rival any journeyman.  He has the most enviable workshop of anybody I've seen, and his projects are aspirational on every level - creativity, originality, ingenuity, and craftsmanship.  He devotes a lot of time to talking about the layout and design of his ever-changing workshop, and there's a lot of clever ideas to steal and pass off as your own.   If you can't tell, I love Frank.  Oh, and his stopmotion videos are awesome. 
Ok, the leap from $1,000 to $2,500 is a big one.  I certainly didn't make it at one time.  It took me years.  But I know folks that decided they wanted to get into woodworking and dropped at least $2,500 getting themselves outfitted.  When you do make the jump, the thought process becomes much less about making sure you can get the job done and becomes more about having quality tools to get the job done.
I added an accessory mitre gauge to the saw for accurate cut-off work. The Incra Miter1000 showed up under the Christmas tree after the Lee Valley flyer photo with part number mysteri­ously ended up on the fridge door with a circle around it last December. A great addition, the Incra is light, accurate, and provides adjustable stops for cutting multiple parts to precise length. I will also make a plywood cut-off sled for the saw for squaring larger panels.

I can't really give a great answer to your question - I'm still learning how to deal with woodworking on a limited budget myself, but I'm getting there. It's not always easy, but when I want something I can't afford, I am starting to remind myself more and more that someday my day will come when hopefully there will be more room in the budget for my woodworking hobby. I'm also hoping to start selling the occasional item within the next year to help bring in some extra money for woodworking related expenses.
Before you bid in an online auction, check the site’s rules of operation. At some sites, a winning bid is a binding contract, which can be a problem if you can’t inspect the tool before you purchase it. Don’t forget shipping costs. In some cases they can exceed the cost of the tool. Also, make sure the tool you’re buying will run on the power you have in your shop. Many former industrial tools run on 240v single-phase power. If your shop doesn’t have 240v service, you’ll need to factor in the cost of upgrading before deciding to buy. You don’t want to saddle yourself with a tool you can’t use, no matter how good the price.

The Jay's Customs Creations YouTube channel releases weekly videos on shop projects and dimensional lumber projects. Jay's show can really help you if you want to do DIY woodworking projects on a budget. He sometimes shows viewers how to complete the project without electricity and using only hand tools. He goes over the prices he paid for materials to give people a realistic budget for the project before they get started.

My shop ended up being 23 x 19 feet, for a total of 437 square feet. I put my wood rack in the basement, but out­side the walled in shop area. To keep the dust in the shop, a three part strategy was employed. I have a dust collection system, an air filtration system and a shop vacuum for cleaning dust out of machinery. I put up new walls, installed new electrical service, lighting, and two access doors for ease of materials move­ment. The shop includes two windows so that I can enjoy natural light, and not feel like I am squirreled away in the basement.
Fine Woodworking Tools and Supplies at Highland Woodworking – make us your woodworking tool supply source. Woodworking Hand Tools are one of our passions at Highland Woodworking so we sell the very best hand tool brands in production today. Handmade, high quality hand tool lines such as Auriou Rasps, Barr Forged Tools, Gransfors Axes, Lie Nielsen Tool Works, Woodpeckers Precision Tools and numerous other fine hand tool makers. We love fine Woodworking Power Tools too, so we sell Festool Power Tools and SawStop - the best power tool brands for woodworking. We've been offering fine woodworking tools and education since 1978, keeping woodworkers informed about the best woodworking tools, tips & techniques along the way. Purchases are backed by Highland Woodworking's 60-day money back guarantee, so you can shop us with confidence for high quality woodworking tools, equipment & supplies.
My first projects were making things from pallet boards. I cut the boards to size using my jig saw.  It’s not quite as good as using a miter saw, but it got me by for a while with sufficient results.  Even now that I have a miter saw, I still use my jig saw A LOT to make notches (like for my outdoor table), or fun designs (like these deer heads last Christmas).
Carpenters Builders Pencils 13pc Joiners Sharpener Soft-lead oval-section carpenters pencils for marking timber, brick, stone and other building materials. Draws thick or thin lines on both rough and smooth surfaces. Oval-shaped length means pencils do not roll away when placed on inclined surfaces. Includes 12 pencils and a sharpener. Pencils supplied are in BLUE.
That just reminded me of a FWW piece many years ago that had me rolling on the floor.  Craftsman had built a large piece being delivered to an apartment on the top floor.  Couldn't get it on the elevator so they got controll of the elevator and ran the top of it to be even with the floor, loaded the piece on the top of the car and rode with it inside the shaft while balancing it and keeping it from hitting the shaft walls.  At some point in the trip up they lost control of the elevator and it started making trips up and down to other floors.  I'll see if I can find it.

Just how small?  Will you have an extra bedroom for your shop or will you be doing woodworking in your living room?  Do you have to put the projects and tools away every time you want to entertain or will you leave everything set up all the time?  A while back FWW had a video tour of a shop in Japan that was smaller than small.  I'll try to find it and get back.  Found it...  shows what can be done in a small space but this shop was not on a small budget so no help there.
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